Senator Responds to Major Bitcoin Seizure
Senator Cynthia Lummis from Wyoming has publicly addressed what might be one of the largest cryptocurrency seizures in U.S. history. The Department of Justice recently confiscated approximately 127,000 Bitcoin worth around $15 billion after disrupting what authorities describe as a massive international scam operation.
Lummis emphasized that this seizure demonstrates how proper policy can transform criminal proceeds into assets that benefit the nation. She specifically mentioned strengthening America’s Strategic Bitcoin Reserve through such actions. The senator’s comments came shortly after federal agencies announced the successful operation against what they called a transnational criminal organization.
Legislative Priorities for Digital Assets
In her response, Senator Lummis outlined two immediate priorities for Congress regarding digital assets. First, she called for passing clear market structure legislation that would provide law enforcement with better tools to combat bad actors while still protecting innovation in the cryptocurrency space.
Second, she stressed the importance of establishing formal procedures for handling seized Bitcoin. This includes determining how such assets should be stored, returned to victims when possible, and safeguarded for future generations. Lummis believes these measures would create a framework that turns criminal activities into lasting national value.
The Underlying Criminal Operation
The seized Bitcoin came from an investigation targeting Chen Zhi, also known as “Vincent,” who authorities identified as the founder and chairman of Prince Holding Group. According to court documents unsealed in Brooklyn, this organization allegedly operated as one of Asia’s largest transnational criminal groups with operations spanning over 30 countries.
Prosecutors described a sophisticated operation involving forced-labor compounds in Cambodia where individuals were compelled to participate in what’s known as “pig butchering” scams. These schemes involve building relationships with victims through social media and messaging platforms, then convincing them to invest in fraudulent cryptocurrency schemes.
Scale and Impact of the Scams
U.S. Attorney Joseph Nocella characterized the operation as “one of the largest investment fraud operations in history.” The official statement noted that the criminal group controlled illicit financial flows amounting to billions of dollars over the past decade. Victims worldwide, including in New York, suffered substantial financial losses from these carefully orchestrated schemes.
The Treasury Department’s announcement highlighted that transnational fraud has cost American citizens billions, with some losing their life savings in minutes. Treasury Secretary Scott Bessent emphasized ongoing coordination with international partners like the United Kingdom to protect Americans from what he called “predatory criminals.”
This case represents a significant milestone in law enforcement’s ability to track and seize cryptocurrency assets linked to criminal activities. The sheer scale of the seizure—$15 billion worth of Bitcoin—demonstrates both the growing sophistication of cryptocurrency-related crimes and the evolving capabilities of authorities to combat them.
